RECKLESS MORTGAGES BROUGHT FINANCIAL MARKET TO ITS KNEES

The strangest fact is that the housing sector is having such problems when the economy otherwise has been doing well. Why have there been so many defaults when the economy has not been in a recession, asks John R. Lott Jr., the author of "Freedomnomics" and a senior research scientist at the University of Maryland?

The defaults are the result of rules that were created to accomplish the "noble goal" -- an increase in home ownership among poor and minority Americans. Accepting these rules and criteria were hardly voluntary, with the Fed warning banks that failure to comply could subject a financial institution to civil liability for actual and punitive damages.

[some of the governments imposed rules:]

• Lack of credit history should not be seen as a negative factor because, for lower-income applicants in particular, unforeseen expenses can have a disproportionate effect on a credit record.
• Accumulating enough savings to cover the various costs associated with a mortgage loan is often a significant barrier to homeownership by lower-income applicants.
• Fannie Mae and Freddie Mac will accept overtime and part-time work, retirement and Social Security income, Veterans Administration (VA) benefits and others and valid income sources. [valid yes, reliable no]

Given these lending practices mandated by the Fed and by Fannie Mae and Freddie Mac, the resulting financial problems for financial institutions such as Countrywide and Bear Stearns are not too surprising, concludes Lott.

[i.e., political correctness run amok was the impetus for this mess, with the government telling professional risk managers how to evaluate risk. Yet the politicians and media are spinning the root cause as a lack of government intervention... They'll probably pull it off]

READ MORE

Socialism Is Coming to America

In his classic 1932 book, Toward Soviet America, Communist Party boss William Z. Foster wrote about how “The United Soviet States of America” will come about.

"As a result of various capitalist crises, the national government would assume more and more control over the economy. “In finance,” ... “it will mean the nationalization of the banking system and its concentration around a central State bank…”

Foster is dead, but the Wall Street financial “bail-out” plan offered by Treasury Secretary Henry Paulson, in coordination with the Federal Reserve, will bring about a socialist America. [snip]

Over at Political Affairs Magazine, a publication of the Communist Party USA, writer John Case is gloating. His article about the crisis is headlined, “A Dose of Socialism to Forestall Disaster.” He thinks that Paulson and Federal Reserve Board chairman Ben Bernanke have been reading the works of closet Marxists.

It would be an exaggeration to say that we are getting close to anything resembling the Soviet system. But it is also a big mistake to call this a “bailout.”

It is socialism. Why are so many in the media afraid of using this term?

[maybe because more American would be angry if they knew what was being done to them, step by step, and it might be stopped?]

READ MORE

Iraqi Government Prepares to Take Control of ‘Sons of Iraq’ Program

Multinational Division Baghdad calls them “Sons of Iraq.” Their countrymen call them the “Volunteers.” Both are fitting namesakes for the 28,000 Baghdad residents who formed citizen militias last year, in coordination with the Iraqi security forces and Multinational Division Baghdad, to protect their communities against al-Qaida in Iraq and other violent extremists.

“They risked their lives and fought a common enemy,” said Army Col. Richard Welch, reconciliation and engagements team chief for Multinational Division Baghdad, who has been involved with the Sons of Iraq program since its earliest days and has watched it grow and change.

Under the new initiative, the Iraqi government will assume the payroll for the Sons of Iraq. To ensure a seamless transfer, officials are undertaking deliberate but paced efforts, beginning with payroll registration at joint security stations throughout Baghdad.

READ MORE

Support for Osama Ben Laden

Amman - Jordanian Muslims' support for Osama Ben Laden has dropped dramatically this year, with only 19 per cent expressing confidence in Al Qaeda leader, compared to 61 per cent three years ago, according to a study.

Substantial numbers of Muslims, however, continue to express confidence in Ben Laden, according to the poll, notably in Nigeria (58 per cent), Indonesia (37 per cent) and Pakistan (34 per cent).

[GWOT]

READ MORE

MSNBC: Bin Laden’s Driver Is ‘Victim’ of Bush Admin ‘Urinating’ on Constitution

[meanwhile, in America...]

On Thursday’s Countdown show, one night after accusing President Bush of not doing enough to protect America from Osama bin Laden’s al-Qaeda organization before the September 11th attacks, MSNBC host Keith Olbermann was outraged on behalf of of bin Laden’s former driver...

[you know; the guy with two rockets in the trunk...]

READ MORE

Biden Fact Check: No US Diplomats In Tehran

CINCINNATI, OH — Big, long, dense speech from Joe Biden on McCain’s foreign policy today, which I’ll parse a little more in depth soon. But first, one face-off between Biden and the facts that, once again, the facts seem to have won.

Criticizing McCain for opposing negotiations with Iran, Biden said even the Bush administration now favors such talks — which Obama has long supported.

“After seven years, in which our senior diplomatic personnel were not allowed to make a single contact with Iranians, the Bush administration realized the absurdity of its own policy and sent our leading diplomat to Iran,” he said. “The Assistant Secretary of State as he went to Tehran, sat down at the instruction of the President of the United States.”

It sounds great for Obama and Biden that the president came around to something so close to their position on talks with Iran; trouble is, the event Biden described never actually happened.

In point of fact, the one “meeting” that has taken place was in Geneva, Switzerland, when Under Secretary of State William Burns sat in on a discussion between Iranian representatives and the other “P5 +1″ political directors involved in nuclear talks. Burns was there merely as an observer, and had no formal role or talks with the Iranians.

READ MORE

Islamic Nations’ Push to Outlaw Religious Defamation Faces Hurdles

The drive by the Organization of the Islamic Conference (OIC), led by members including Pakistan, Iran and Egypt, has sparked concern that the right to freedom of expression is being undermined by a group of countries, including some that enforce blasphemy laws and punish “apostasy.”

Addressing a press conference at the U.N. headquarters on Monday, OIC secretary-general Ekmeleddin Ihsanoglu said states would be asked to back a measure declaring activities such as the publication of “blasphemous” caricatures a crime... [snip]

In its latest annual report on international religious freedom, the State Department criticized the OIC campaign, saying that;

“Defamation, in its ordinary meaning, refers to unwarranted attacks on one’s reputation,” they said. “Religions, like other beliefs, cannot be said to have a reputation of their own.”

“despite a pretence of protecting religious practice and promoting tolerance, the flawed concept attempts to limit freedom of religion and restrict the rights of all individuals to disagree with or criticize religion, in particular Islam.”

A petition organized by the American Center for Law and Justice, urging U.N. officials to block the OIC move, has been signed by more than 84,000 people.

READ MORE

Egypt cleric says Mickey Mouse is not agent of Satan

CAIRO - An Egyptian Muslim scholar has called for an end to risible religious edicts after a Saudi cleric said Mickey Mouse was an agent of Satan who should die, local media reported on Wednesday. Sheikh Mohamed al-Munajid, a cleric who often appears on Saudi television and who is also a former Saudi diplomat in the United States, said last week that mice were "agents of Satan" and should be killed.

READ MORE

Militarization of Space Means U.S. Needs Space Defenses,

Adversarial nations now see outer space as a legitimate military theater from which to attack America’s military and economic interests, according to national security experts and members of Congress who favor strong countermeasures, including a missile defense system.

The functional difference between space-based military operations and missile defense technology is rapidly disappearing, Unless the U.S. works aggressively to fully exploit its technological edge in outer space, nations with hostile intentions will move to neutralize America’s advantage.

“If we don’t step up, we not only endanger ourselves, we really step back as the world’s leader. This is especially important in light of the other advances other nations are making, without any of the reticence our liberal friends in Congress have.”

The potential vulnerability of U.S. systems to attack was made evident last year when China used a ground-based medium-range missile to knock down a weather satellite orbiting some 537 miles above the Earth. U.S. strategic planners also need to anticipate less overt actions. Seemingly benign broadcast satellites, for example, could be used to jam U.S. systems in time of conflict.. [snip]

To date, opposition from “arms-control advocates” and congressional Democrats has constrained the development of space-based defenses...

[we'll be voting on a lot this November]

READ MORE

Corrupted science revealed

Outsiders familiar with the proper workings of science have long known that modern Climate Science is dysfunctional.

Now a prominent insider, MIT Meteorology Professor Richard S. Lindzen, confirms how Al Gore and his minions used Stalinist tactics to subvert, suborn and corrupt a whole branch of science, citing chapter and verse in his report entitled "Climate Science: Is it currently designed to answer questions?"

His answer: A resounding "no."

Detailing the corruption, he names a series of names. Until reading this I did not know that

"For example, the primary spokesman for the American Meteorological Society in Washington is Anthony Socci who is neither an elected official of the AMS nor a contributor to climate science. Rather, he is a former staffer for Al Gore." Page 5

Although a bit lengthy, this very important report is highly readable and revealing...

[luckily, AT's summary is only a page yet still explains the method behind the hijacking - Recommended > ]

READ MORE

NYT: Gov’t Should Attach ‘Green’ Strings to $700 Billion Bailout

Nationalization has its consequences. Just note the rhetoric coming from some prominent voices on the left. The government's foray into offering services normally provided by the private sector by bailing out aging mortgage giants gives it the power to implement "green" building requirements, according to the New York Times...

[as predicted {warned}]

READ MORE

Democrats vow moratorium on offshore drilling to return in ’09

In a 370-58 vote, the House on Wednesday approved a continuing resolution (CR) to keep the government operating. The CR does not include a renewal of the ban on offshore drilling, which has been in place for over 20 years.

House Democrats on Wednesday vowed to get a new offshore drilling moratorium enacted early next year, a day after learning they’d lost this year’s battle over an issue that dominated congressional politics for most of the summer.

READ MORE

Spain will pay jobless migrants to return home

Spain will pay jobless immigrants to go home under new plans revealed. The measure was approved at a Cabinet meeting after a largely symbolic fast-track passage through Parliament. The plan, which will come into force in around a month, targets tens of thousands of non-EU citizens who have been laid off in Spain and are entitled to unemployment benefits.

READ MORE

Crime, illegals and the jobs magnet

Perhaps no political issue better illustrates how out of touch Washington is than illegal immigration. Polling data shows that Americans overwhelmingly support a tougher stance toward illegals, yet the message does not seem to have gotten through to Congress, where powerful Democratic lawmakers are preventing floor consideration of two major pieces of legislation.

legislation. One is the SAVE Act, a bill to curb illegal immigration through stepped-up enforcement - in particular, more resources to enable federal, state and local authorities to arrest, detain and eventually remove illegals. The SAVE Act (H.R. 4088 ) is the number one legislative alternative to "comprehensive immigration reform" (i.e., mass amnesty).

House Speaker Nancy Pelosi has blocked the SAVE Act from coming to the floor for a vote, and it is likely dead for this year...

[we'll be voting for more than just President in November...]

READ MORE then >

> The SAVE Act (H.R. 4088 )
Pelosi > (202) 225-0100
[email blocked to anyone outside her district - despite her being speaker of the house]
Your Congressman > https://forms.house.gov/wyr/welcome.shtml
.

The Drumbeat

Probably the most important piece you will read this weekend.

It's always there. Day and night. Rain or shine. It comes at you from every direction. It comes over the TV, the radio, at work, at school, in music, in the newspapers, from the politicians, in conversation with others, even in church. It wears you down. It robs you of the will to resist its message. Even short-lived victories, which stop it briefly, leave you with the knowledge that it will return; each minor victory bound to be lost to the redoubled efforts of this patient and persistent force. You can't escape it. It never stops.... [snip]

It's the drumbeat of the left. It pervades every activity. It is post-structural, post-modern, post-everything in the parlance of the day. It is tolerant, diverse, non-judgmental, non-discriminatory, egalitarian, politically correct, multicultural, globalist, and collectivist. It insists that there are no rights and wrongs, no moral absolutes. It turns everything upside down in its looking glass world. It denies the correctness of all that produced what our culture revered before the deconstruction of the world in accordance with its tenets... [snip]

Generally, these perversions are manifested in bigger government, more laws, more bureaucracy, more regulations, more taxes, and government controlled redistribution of wealth, more collectivism, less individualism, and less freedom. We all hear it constantly: government must do more to ensure Americans avoid the consequences of their choices. We all know the song, sung to the cheers of the unthinking throngs who would give up their very humanity for the promise of a free lunch... [snip]

It is said that a fish is not aware of the water in which it swims since it is totally immersed in it...

[Highly Recommended > ]

READ MORE

Don't sell America's economy short

There have been plenty of crises in the past -- the stagflation and oil-price spikes of the 1970s, the savings and loan debacle and soaring trade and budget deficits of the 1980s, the popping of the dot-come bubble and the terrorist attacks in the early 2000s -- that led many observers to predict that the United States would soon go the way of Rome.

What the pessimists ignore is that the fundamentals of the U.S. economy remain strong. Indeed, the World Economic Forum has ranked the United States as the world's most competitive economy for the last two years. Its statistics show that per-capita [explaining China] gross domestic product in the U.S. has consistently grown faster than in other developed economies since 1980.

America's competitors display other weaknesses that become apparent in times of crisis. As Harvard economic historian Niall Ferguson noted over the weekend in the Washington Post, while the U.S. stock market has declined roughly 18% this year, China has seen a fall of 48% and Russia of 55%. "These figures are not very good advertisements for the more regulated, state-led economic models favored in Beijing and Moscow," he wrote.

READ MORE

Meanwhile, in the media...

[NOTE: all Policy Position comparisons can be found by going HERE - or by typing "policy positions" {in quotes!} in the Search Blog box in the upper left corner of page.]

Policy Positions Re: TRADE


How do Sens. John McCain (R-Ariz.) and Barack Obama (D-Ill.) differ on trade? The National Journal compared and contrasted the two presidential candidates.



MCCAIN ON TRADE

Trade agreements:

• McCain calls himself an "unashamed and unabashed defender" of the 1993 North American Free Trade Agreement and criticizes Obama's "protectionist NAFTA-bashing."
• He supports a pending free-trade agreement with Colombia and backs the pending South Korea free-trade agreement, citing Seoul's pivotal role as a strategic ally in Northeast Asia and in Iraq.
• He has voiced support for an eventual free-trade agreement with the European Union.
• He promises to seek an end to all agricultural tariffs and farm subsidizes that are not based on clear need and to "aggressively promote trade liberalization at the World Trade Organization."
• He vows to hold "every nation we trade with to the commitments they have made under the agreements we have signed."

China:

• McCain says that a robust trading relationship with China, America's fastest-growing export partner, is in the best interest of the United States.
• To that end, in 2000 he voted in favor of permanent normal trade relations with China, which opened the door for Chinese membership in the World Trade Organization.
• He argues against focusing too much "in isolation" on the overvalued Chinese currency.
• He pledges to pressure Beijing on food and product safety and on intellectual-property protection.

Displaced workers:

• McCain would deposit a portion of each person's unemployment insurance taxes into a "lost-earnings buffer account" that workers could use to cover expenses when they lose their jobs.
• Traditional unemployment insurance would kick in if the new account was exhausted within 26 weeks.
• A worker would receive any unspent funds upon retirement.
• He would also give workers access to a flexible training account to provide quick assistance in seeking new skills.

Source: "McCain on Trade," in "Where They Stand," National Journal, August 30, 2008.

For text:

http://www.nationaljournal.com/njmagazine/nj_20080830_3632.php



OBAMA ON TRADE

Trade agreements:

• Obama proposed renegotiating the North American Free Trade Agreement to bolster labor and environmental standards.
• He promises to use future trade agreements to raise labor and environmental 'standards'.
• He opposes the Colombia agreement because of violence against union leaders, but promises to work with Bogota to deepen the bilateral relationship.

China:

• Obama chastises the administration for taking no action against Chinese currency manipulation.
• He co-sponsored legislation that would make currency undervaluation a subsidy and, as a result, would likely permit countervailing duties to be applied to Chinese imports. [Q: who gets the money from duties?]
• This bill would direct the Treasury secretary to initiate negotiations with Beijing to revalue its currency.

Displaced workers:

• Obama wants to update the existing Trade Adjustment Assistance program to include service workers.
• He would create flexible education accounts to retrain workers.
• He would provide retraining assistance for workers before they lose their jobs in sectors of the economy vulnerable to dislocation.
• He would provide assistance to hard-hit communities and improve the health care tax credit for dislocated workers.

Source: "Obama on Trade," in "Where They Stand," National Journal, August 30, 2008.

For text:

http://www.nationaljournal.com/njmagazine/nj_20080830_3632.php